A Little Good News
It has been a little while since I have seen something in the media that was positive about the local housing market. On Saturday, The Oregonian ran an article about Legend Homes that explained how they have been able to work out a deal with many of their lenders to allow them to keep operating, and begin building houses again. They plan to start building again on Monday.
Now, I am not sure whether starting to build a bunch more houses is the smartest thing to do right now, however, maybe they know something we don’t. If they start houses now they should hit the market next spring, and maybe that will be the end of the bottom, and the beginning of a new up swing. Time will tell.
What I do think is positive is that Legend Homes’ lenders are taking a creative and helpful approach to the problems in the housing market. The fact that they are willing to stick it out with Legend Homes, makes sense. Lengend Homes can finish the houses that are in progress, which is good for everyone. People can keep working. Typically an unfinished home has to be bought with cash which is tough for most people, especially in today’s market. A finished home can be financed, thus making it easier to sell, keeping it out of foreclosure, bringing money into Legend Homes and then onto the lenders.
I applaud Lengend Homes and their lenders for working out a deal that keeps Legend Homes from being another catastrophe of the housing down turn. Hopefully, this is just the beginning of many more stories of good news that will help our market to rebound.
See “Bankrupt and building again” by Ryan Frank, The Oregonian, September 13, 2008
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